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A snowboard manufacturer is considering investing in technology that will give a good indication of how heavy snowfall will be in the future. The predictions tend to be reasonably accurate.
The current budgeted profit for the year is 2,560,000 but if they invest in this technology and it works, the expected profit will be 2,640,000. The manufacturer is willing to invest a maximum of 40,000 into the venture.
What is the expected profit if the investment is NOT made?
Suggested Answer: D
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2 comments · newest first
AR
Art
3 hours ago
I'm not entirely sure, but I remember a similar question where we had to identify profits based on different scenarios. I think the answer might be A.
VI
Vincent
5 days ago
I think the expected profit without the investment is just the current budgeted profit, which is 2,560,000.